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164 TARP Banks Remain ($5.73 billion outstanding) After an initial $204.9 billion investment in 707 financial institutions through the Capital Purchase Program (CPP), the Treasury has already net a profit of $17.1 billion. (The total repaid  as of April 30, 2013 was $222 billion.) Kudos! The 164 banks that remain in the CPP represent just $5.73 billion of the initial investment.   We want to stress the importance of not lumping all remaining CPP institutions into one big generalization. While 107 CPP banks were on the FDIC’s confidential Problem List at year-end 2012 (and also on Bauer’s), 57 were not. It is unjust to color them all with the same brush. Some institutions had very good reasons to participate in the CPP and as long as they don’t miss any scheduled payments, they should not be penalized for that.   However, as the Treasury winds down the CPP, the percentage of institutions missing dividend payments is on the rise. The April 30th update from the Treasury contained more than 100 banks (or bank holding companies) that had missed at least one dividend payment; most had missed several.   These are the banks that need to be more closely scrutinized. Granted, some institutions may choose not to pay dividends for legitimate reasons. And some have regulatory agreements forbidding the payment of dividends. Right or wrong, though, the inability or unwillingness to make dividend payments gives an impression of financial weakness. Of those that have missed scheduled payments, nearly a third have agreed to have an observer or at least one Treasury-appointed board member  attend Board meetings. Seven institutions have declined that request. Page 2 lists the 25 institutions with the largest CPP investments still enrolled in the program along with: initial investment amount,  percentage of the total outstanding, and how many scheduled dividend payments have been missed, if any. None of these 25 have declined Treasury’s request to appoint an observer.
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View Sample of Bauer's Credit Union Director's report.